While banking charges might seem excessive in the UK, they are nothing compared to those levied on overseas accounts. Make sure you know what to expect, says Hannah Beecham
Following the shock decision by the Supreme Court to back the banks’ practice of imposing high charges on customers who spend above their overdraft limit, we must all learn to pay close attention to our balances and keep abreast of any additional tariffs we may have to meet.
And, none more so than the expatriate banking customer, who finds it hard to function financially without an offshore bank account but who is aware that very few offshore banks provide anything like the ‘free’ service offered back home. The traditional pattern of retail banking offshore is not the same as that experienced in the UK, even though these offshore banks are UK high street subsidiaries.
For starters quite a number of plain vanilla, no-frills offshore bank accounts require a minimum opening deposit, sometimes as high as £5,000. If you’re looking for a bank that has a low or no minimum deposit you should check out Isle of Man Bank, NatWest Offshore, RBS International and The Co-operative Bank Guernsey. Whereas, Abbey International, Bank of Scotland International, Barclays and HSBC Bank International all ask for £5,000. Clydesdale Bank International wants £2,500 and Lloyds TSB Offshore requires £1,500.
The benefits offered by offshore banks are fairly standard. They all provide a debit card, even with their most basic current accounts and all, bar Clydesdale Bank International and The Co-operative Bank, provide a cheque book. For those looking for multi-currency facilities Abbey International, Clydesdale Bank International, HSBC Bank International and Lloyds TSB Offshore offer accounts that can be denominated in sterling, euros and US dollars.
Read more about account charges in the January issue of Living Abroad magazine
